The Registration Authority (RA) of Abu Dhabi Global Market (ADGM) has taken a monumental step in the evolution of digital asset regulatory frameworks by officially releasing the Distributed Ledger Technology (DLT) Foundations Regulations 2023.
This landmark legislative structure is designed to offer a comprehensive framework for DLT Foundations and decentralized autonomous organizations (DAOs), addressing the unique requirements of the blockchain industry.
The introduction of this groundbreaking regulatory framework aligns with ADGM’s broader strategy to promote initiatives in the blockchain and digital asset sector.
As the world’s first regulatory framework of its kind, it is tailored to serve blockchain foundations, Web3 entities, DAOs, and traditional foundations looking to enhance their operations through DLT.
This regulatory regime is poised to revolutionize the industry by providing a unified solution for digital asset-related activities and the broader foundations landscape, offering a path towards a more transparent and efficient future.
ADGM’s DLT Foundations Regime not only offers an effective means to organize and promote governance, but also recognizes the industry’s imperative need for decentralization. The enactment of this regulatory regime follows a public consultation involving participants from the DLT industry to gather feedback and refine the regulations. Consequently, this framework solidifies ADGM’s standing as a global pioneer in the regulation of digital assets.
Ahmed Jasim Al Zaabi, Chairman of ADGM, emphasized, “Abu Dhabi is rapidly emerging as the destination of choice for global players at the forefront of digital asset development. The introduction of the DLT Foundations Regime marks a revolutionary step forward, reinforcing ADGM’s commitment to a proactive approach rooted in extensive cross-industry dialogue and collaboration with various stakeholders. The new regime serves as a driving force for positive change in the digital assets sector. By transforming the blockchain and Web3 landscape, we are moving towards a future characterized by setting global benchmarks with enhanced transparency and efficiency.”
The rapid evolution of digital ledger technology in recent years has positioned it at the heart of the global digital asset sector. ADGM, as a leading International Financial Center (IFC), remains dedicated to championing technological innovation and supporting crypto initiatives.
The above highlights the significance of the newly introduced regulatory framework, as it opens the door for foundations to effectively utilize their accumulated funds.
Typically, these foundations hold substantial resources, which they allocate towards growing the ecosystem of their respective protocols. This allocation involves various initiatives like developer training, funding startups, and other ecosystem-building activities.
The critical point here is that these funds are derived from the tokens they mint, making it a pivotal aspect of their sustainability and capacity to foster innovation within the digital asset space.
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